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Financial Performance Measures and Value Creation: the State of the Art / by Daniela Venanzi
Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: SpringerBriefs in Business | SpringerLink BücherPublisher: Milano : Springer Milan, 2012Description: Online-Ressource (XI, 73p. 3 illus, digital)ISBN:- 9788847024519
- 657.8333
- 658.152
- 332 23
- 658.15
- HG1-9999 HG4501-6051 HG1501-HG3550
- HG1-HG9999
- HG4028.V3 V46 2012
Contents:
Summary: Introduction -- Criticism of the accounting-based measures of performance -- Competing financial performance measures.- The metrics war -- Concluding remarks: strengths and weaknesses of the economic value measures.- Appendices -- ReferencesSummary: The choice of financial performance measures is one of the most critical challenges facing organizations. The accounting-based measures of financial performance have been viewed as inadequate, as firms began focusing on shareholder value as the primary long-term objective of the organization. Hence, value-based metrics were devised that explicitly incorporate the cost of capital into performance calculations. Despite the increasing emphasis on these value-based measures, no definitive evidence exists of which metric works better than others, and on the extent to which any of them is superior to traditional accounting measures. In this scenario, the objective of this book is contributing to the ongoing dialogue on the appropriateness of different financial performance measures, by providing a systematic and updated review of the major value-based measures, by highlighting their respective strengths and weaknesses and by comparing the main international empirical evidence on their effectiveness. This book can be a powerful tool for guiding managers and graduate students in the “tangled forest” of the existing metrics, by providing them with the quick, but adequate knowledge for consistently adopting themPPN: PPN: 1651098883Package identifier: Produktsigel: ZDB-2-SBE
2.2.4 Shareholder Value Added (SVA)2.2.5 Economic Margin (EM); 2.2.6 Cash Value Added (CVA); References; 3 The Metrics War; Abstract; 3.1…Overstated Claims?; 3.2…The Association Between Economic Value Measures and Stock Returns; 3.3…The Association Between Economic Value Measures and DCF; 3.4…Managerial Implications of the Economic Value Measures; 4 Concluding Remarks: Strengths and Weaknesses of the Economic Value Measures; Abstract; 4.1…Introduction; 4.2…A Quick Comparison of the Economic Value Measures; References; Appendix 1 Formulas of CFROI
Appendix 2 Excess Investor Return in Terms of EVA
Financial Performance Measures and ValueCreation: The Stateof the Art; Contents; Introduction; 1 Criticism of the Accounting-Based Measures of Performance; Abstract; 1.1…Introduction; 1.2…Inaccuracy and Subjectivity of the Accounting Numbers; 1.3…Nonalignment with the Goal of Maximizing Shareholder Wealth; 1.4…Short Termism of Managerial Decision-Making; References; 2 Competing Financial Performance Measures; Abstract; 2.1…Trends in Performance Measurement; 2.2…Economic Value Measures; 2.2.1 The General Framework; 2.2.2 Economic Value Added (EVA); 2.2.3 Cash Flow Return on Investment (CFROI)
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